NPA

Non-Performing Asset (NPA) Resolution Plan A Wishful Thinking

Fema / RBI - Finance Minister Piyush Goyal said that the Government has accepted a report submitted by a committee of bankers led by Punjab National Bank Chairman Mr. Sunil Mehta to set up an Asset Management Company (AMC) for the resolution of loans. They will also set up Alternate Investment Funds to raise money to back the AMC....

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Management Of NPA- New Suggestion- An Old Wine In New Bottle

Fema / RBI - Recently Mr. Piyush Goyal, Finance Minister, announced setting up of a committee to give recommendations in two weeks on formation of an asset reconstruction company for faster resolution of stressed assets besides mooting the idea of BAD BANK. ...

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Musings on the new NPA rules of RBI

Fema / RBI - The new Non Performing Assets (NPA) Rules of RBI announced recently seems to be  apparently to make the books of the Banks reflect the actual underlying asset quality but in the short term the NPA provisioning in the short term would get bad ,if not worse, in the short term. (Assuming that there are no […]...

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Management of NPA: Who is Responsible for Account Becoming NPA?

Fema / RBI - Recently I have undertaken an assignment of dealing with the legal proceedings initiated by three nationalized banks under SARFAESI Act of a Corporate Company who are service providers to infrastructure projects initiated by the State Governments and Central Government and some of them are being financed by World Bank and Asian Developmen...

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Action Plan for NPA Ordinance – Sequel 2

Fema / RBI - Complementing the Ordinance on Non-Performing Assets (NPA) which originally brought a whole new breeze in the resolution space in India, RBI has come up with a press release as a further to the first step in crystallizing the concept as laid down in the Ordinance. RBI has brought a lot of changes for the purpose of implementation of the ...

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Audit of Banks- RBI issued guideline for Audit and Auditor appointment

Fema / RBI - With regard to Statutory Audit, Reserve Bank of India (RBI) has informed that it has issued Guidelines for appointment of Statutory Central Auditors (SCAs) and Statutory Branch Auditors in Public Sector Banks (PSBs), which covers the norms on eligibility, empanelment and selection as well as the procedure for appointment of such auditors....

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Control and resolution of NPAs

Fema / RBI -  The Gross Advances of Scheduled Commercial Banks (SCBs) increased from Rs.25,03,431 crore as on 31.3.2008 to Rs. 68,75,748 crore as on 31.3.2014, as per the Global Operations Data of the Reserve Bank of India (RBI). As per RBI inputs, the primary reasons for spurt in stressed assets have been observed to be, inter-alia, aggressive lendi...

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Bankwise Gross NPA ratio of Public Sector Banks as on 31.03.2018

Fema / RBI - The gross NPA ratio for Public Sector Banks (PSBs) as a category is 14.6% in the financial year (FY) 2017-18, as per Reserve Bank of India (RBI) data. In the last 25 financial years, the gross NPA ratio for PSBs was highest in FY 1993-94 at 24.8% and was also higher in six other financial years....

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IBC: Financial Creditors realized claims of approx Rs. 47426 crore

Fema / RBI - The Financial Creditors have realized claims of approximately Rs. 47,426.75 crore in 26 cases where resolution plans are submitted under the IBC framework since its enactment....

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Have new NPA norms for Wholesale Long Term Finance Bank: ASSOCHAM to RBI

Fema / RBI - ASSOCHAM has approached the RBI with a plea that the provisioning criteria for the non-performing assets (NPAs) in the case of proposed Wholesale Long- Term Finance (WLTF) banks should be based on stress tests of each of the funded projects, unlike the present standard provisioning norms due to a different nature of the long term, big tic...

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Interest income on NPA cannot be recognized unless received

Trade link Securities Ltd. Vs. Income Tax Officer (ITAT Kolkata) - The Income Tax Appellate Tribunal in its recent order ruled that no additions can be made since interest has accrued to the assessee but has not been realized. ...

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Provisions for NPA as per RBI Norms by NBFCs not deductible

M/s. Southern Technologies Ltd. Vs Joint Commissioner of Income Tax (Supreme Court of India) - The assessee, a NBFC, made a ‘Provision for NPA’ in terms of the RBI Directions 1998. It claimed a deduction for the said provision u/s 36 (1)(vii) on the ground that as it was debited to the P&L Account and reduced the profits, it was a ‘write off’. In the alternative, it was claimed that t...

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Chargeability of interest income to tax when same is only technically accrued

Brahamputra Capital & Financial Services Ltd. Vs ITO (ITAT Delhi) - 8. We have carefully deliberated on the rival contentions raised by the learned AR and DR. The controversy here revolves around chargeability of interest income to the tax which even though technically accrued as per the mercantile-system of accounting being followed by the assessee, but the same wa...

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President assents Banking Regulation (Amendment) Ordinance, 2017 on NPA

No. 1 of 2017 - (04/05/2017) - Banking Regulation (Amendment) Ordinance, 2017 enables the Union Government to authorize RBI to direct banking companies to resolve specific stressed assets (NPA)...

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Section 23 of the Banking Regulation Act, 1949- Relaxations in Branch Licensing Policy

RBI/2010-11/283 RPCD.CO.RRB.BC No. 28/ 03.05.90-A/2010-11 - (18/11/2010) - Accordingly, Reserve Bank of India hereby permits Regional Rural Banks to open branches in Tier 3 to Tier 6 centres (with population up to 49,999 as per Census 2001 – details of classification of centres tier-wise furnished in Annex II) without having the need to take permission from Reserve Bank...

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Recent Posts in "NPA"

Audit of Banks- RBI issued guideline for Audit and Auditor appointment

With regard to Statutory Audit, Reserve Bank of India (RBI) has informed that it has issued Guidelines for appointment of Statutory Central Auditors (SCAs) and Statutory Branch Auditors in Public Sector Banks (PSBs), which covers the norms on eligibility, empanelment and selection as well as the procedure for appointment of such auditors....

Read More
Posted Under: Fema / RBI |

Control and resolution of NPAs

 The Gross Advances of Scheduled Commercial Banks (SCBs) increased from Rs.25,03,431 crore as on 31.3.2008 to Rs. 68,75,748 crore as on 31.3.2014, as per the Global Operations Data of the Reserve Bank of India (RBI). As per RBI inputs, the primary reasons for spurt in stressed assets have been observed to be, inter-alia, aggressive lendi...

Read More
Posted Under: Fema / RBI |

Bankwise Gross NPA ratio of Public Sector Banks as on 31.03.2018

The gross NPA ratio for Public Sector Banks (PSBs) as a category is 14.6% in the financial year (FY) 2017-18, as per Reserve Bank of India (RBI) data. In the last 25 financial years, the gross NPA ratio for PSBs was highest in FY 1993-94 at 24.8% and was also higher in six other financial years....

Read More
Posted Under: Fema / RBI |

IBC: Financial Creditors realized claims of approx Rs. 47426 crore

The Financial Creditors have realized claims of approximately Rs. 47,426.75 crore in 26 cases where resolution plans are submitted under the IBC framework since its enactment....

Read More
Posted Under: Fema / RBI |

Non-Performing Asset (NPA) Resolution Plan A Wishful Thinking

Finance Minister Piyush Goyal said that the Government has accepted a report submitted by a committee of bankers led by Punjab National Bank Chairman Mr. Sunil Mehta to set up an Asset Management Company (AMC) for the resolution of loans. They will also set up Alternate Investment Funds to raise money to back the AMC....

Read More
Posted Under: Fema / RBI |

Management Of NPA- New Suggestion- An Old Wine In New Bottle

Recently Mr. Piyush Goyal, Finance Minister, announced setting up of a committee to give recommendations in two weeks on formation of an asset reconstruction company for faster resolution of stressed assets besides mooting the idea of BAD BANK. ...

Read More
Posted Under: Fema / RBI |

Musings on the new NPA rules of RBI

The new Non Performing Assets (NPA) Rules of RBI announced recently seems to be  apparently to make the books of the Banks reflect the actual underlying asset quality but in the short term the NPA provisioning in the short term would get bad ,if not worse, in the short term. (Assuming that there are no […]...

Read More
Posted Under: Fema / RBI |

Interest income on NPA cannot be recognized unless received

Trade link Securities Ltd. Vs. Income Tax Officer (ITAT Kolkata)

The Income Tax Appellate Tribunal in its recent order ruled that no additions can be made since interest has accrued to the assessee but has not been realized. ...

Read More

Management of NPA: Who is Responsible for Account Becoming NPA?

Recently I have undertaken an assignment of dealing with the legal proceedings initiated by three nationalized banks under SARFAESI Act of a Corporate Company who are service providers to infrastructure projects initiated by the State Governments and Central Government and some of them are being financed by World Bank and Asian Developmen...

Read More
Posted Under: Fema / RBI |

Action Plan for NPA Ordinance – Sequel 2

Complementing the Ordinance on Non-Performing Assets (NPA) which originally brought a whole new breeze in the resolution space in India, RBI has come up with a press release as a further to the first step in crystallizing the concept as laid down in the Ordinance. RBI has brought a lot of changes for the purpose of implementation of the ...

Read More
Posted Under: Fema / RBI |

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